The terms of reference of the Senate Economics References Committee Inquiry on Scrutiny of Financial Advice have been expanded to cover additional matters relating to life insurance claims:
a) the need for further reform and improved oversight of the life insurance industry;
b) whether entities are engaging in unethical practices to avoid meeting claims;
c) whether a life insurance code of conduct is required;
d) the role of ASIC in reform and oversight of the industry; and
e) any related matters.

The expanded terms of reference follow recent media reports of unacceptable customer experiences resulting from out of date policy medical definitions and unethical conduct.

Separately the Financial Services Council says the life insurance sector is committed to implement a Life Insurance Code of Practice by 1 July 2016, which “will commit life insurers to strong standards of customer service, and will enhance consumer protections in the key areas of underwriting and claims”.

ASIC is also currently reviewing life insurance reforms.

The Corporations Amendment (Life Insurance Remuneration Arrangements) Bill 2016 has been passed by the House of Representatives but will lapse in the Senate if it is not passed before an election is called.